IOC SBR project in Panipat to create 1,500 jobs and a business of Rs 1,500 crore

PANIPAT: The Indian Oil Corporation (IOC) has set up its most awaited styrene butadiene rubber (SBR) project at the Panipat Petro Hub with an investment of around Rs 900 crore. The joint venture project of IOC, TSRC, Taiwan and Marubeni Corporation of Japan is expected to kickstart the rubber industry in the city of textile.

Around 1,500 direct and indirect job opportunities are expected to be created and an annual business of around Rs 1,500 crore by the end of March 2013.

The SBR unit in Panipat would not only result in import substitution but also add value to the intermediate streams of the naphtha cracker plant. As part of integrating the petrochemical value chain and enhancing value from the naphtha cracker at Panipat, this project envisages production of SBR from the butadiene feedstock available from the naphtha plant.

"The Panipat Naphtha Cracker Plant ( PNCP) would supply the butadiene feedstock and utilities (power, steam, raw water etc.) required for the project operation", said Sidharth Mitra, executive director, IOC. He said that automotive industry (tyre) is the major consumer of SBR in the country. Other marginal requirements of SBR are towards conveyor belts and the footwear industry.

OPPORTUNITIES

Mr Mitra believes that the petro hub in Panipat would create around 6,000-7,000 job opportunities in the region. The project is expected to be operational, by March 2013.

The potential of the project according to Mr Mitra of IOC is of 120 KTA. "The annual turnover at 100 percent capacity utilisation is expected to be of Rs 1,500 crore."

TSRC Taiwan is the SBR technology provider and a leading producer and supplier of synthetic rubbers. Marubeni is one of the largest general trading companies in Japan, dealing in commodities, oil, gas, chemicals, metals, machineries and foods, on a global level.

The IOC holds 50 percent equity in the SBR project while TSRC and Marubeni hold 30 and 20 percent equities in the project, respectively.

ALL OVER GROWTH

"We all know that Panipat is a hub for textile business, hence the rubber market is expected to pick up at a brisk pace and would do around fifty percent of the allied business operations run here," said Manoj Pal Singh, deputy general manager, HSIIDC, which is taking care of developing infrastructure for the units to pursue business.

The unit will diversify the product portfolio of Panipat that already generates revenue of over Rs 10,000 crore with textiles.

"The project would give a boost to the commodity market with blood bags, while in the automobile industry SUV bumpers, dash boards and side door covers would come into existence," Mr Mitra said.

"The Petro Complex in Panipat is a welcome move by HSIIDC and IOC because it is opening new opportunities of diversification to local businessmen and help the Panipat economy to leap frog by around 200 percent as the current annual turnover of the city stands at around Rs 12,000 crore," said Sukhmal Jain, member of the Haryana Chamber of Commerce and Industry and vice president of the Panipat Exporters Association.

He elaborated that the petro hub in Panipat would help the export business because ISRL would help the transport industry in the region to become self reliant. At present, the export business of the city stands at around Rs 5,500-6,000 crore. In the next financial year the export business here is expected to go up by around 100 percent

FINDING STAKEHOLDERS

However, these expectations would become a reality only when the businessmen of the region take interest in setting up new businesses. Towards this goal, IOC is creating interaction and informative sessions with possible stakeholders.

"We are organising an investors' meet and interactive sessions with the businessmen to make them aware of the opportunities and the mode of investment in the complex", said IOC's Mr Mitra.

"The investment level in the Panipat Petro Complex is in the range of Rs 10 crore to Rs 200 crore. So, it provides an opportunity to both the small and big investors of Panipat and the region around it," Mr Mitra added.